ACEA (ACE) Investor presentation summary

Strategic positioning and business model

• Operates as a leading multi-utility with a focus on regulated infrastructure in water, electricity, and environment sectors, serving over 10 million people in Italy and internationally.

• Maintains low leverage with a NFP/EBITDA ratio of 3.54x as of 1H2024, supported by strong cash flow and disciplined investment.

• Regulated businesses account for approximately 90% of EBITDA and capex, emphasizing stability and resilience.

• Pursues growth through operational excellence, innovation, and expansion into adjacent segments.

• ESG principles are integrated across all business lines, with significant investments aligned to sustainability targets.

Financial performance and guidance

• 1H2024 revenues reached €2.0bn (+2% YoY), with recurring EBITDA at €720m (+7%) and net profit at €168m (+18%).

• Gross capex for 1H2024 was €568m (+4%), with 89% invested in regulated businesses.

• Operating free cash flow was €25m, maintaining a solid financial structure.

• 2023 saw EBITDA of €1.4bn (+7%), net profit of €294m (+5%), and capex of €1.14bn (+9%).

• 2024 guidance confirmed: EBITDA growth of 3–5%, investments of €1.5bn, and NFP/EBITDA around 3.5x.

Sectoral strategies and investments

• Water: Focus on resilience, network optimization, and selective growth in Italy and abroad, with major projects like the Peschiera Aqueduct.

• Electricity: Grid modernization, smart city services, and public lighting upgrades, targeting full 2G smart meter coverage and enhanced automation.

• Environment: Expansion and revamping of waste-to-energy and recycling plants, with a focus on circular economy and new technologies.

• Engineering: Integration of specialized skills and partnerships to support major infrastructure projects.

• Production: Strong pipeline in renewables, aiming for carbon neutrality and energy balance.